Reasons to invest in Zambia

Zambia is a multi-party democracy and provides a market oriented liberalized economic environment. The Zambian Government welcomes all investors and has designed a package of incentives aimed specifically at creating a sound investment climate for increased domestic economic growth.

The country’s central location in the region as well as combination of following key strengths makes Zambia an ideal investment destination.

Abundance of natural resources and labour, which are highly under-utilized
Continuous political stability since attaining independence in 1964
Abolition of Controls -Price, Interest Rate, Foreign Exchange and free repatriation of earnings and repayments
Guarantees and Security to investors with statutory rights to full and fair compensation
Duty Free Access to Regional, wider African and the USA markets under SADC, COMESA/FTA, AGOA (African Growth and Opportunity Act), and Cotonou Agreements respectively
Banking, Financial, Legal and Insurance services of international standard as well as a Stock Exchange
Double Taxation Agreements with number of European, North American, African and Asian countries
Attractive place to work and live – sub-tropical climate and vegetation with plenty of water and electricity.
Friendly people, mostly English speaking with high literacy rate.
Educational establishments to University level.
Strong religious values.
Open-air lifestyle with nature reserves, game parks, rivers, lakes and waterfalls.
Thriving Private Sector – Government has successfully privatized most of the previously state owned enterprises thus encouraging an entrepreneurial spirit.

Investment Incentives

The Investment Act of 1993 (amended 1st April 1996) offers a wide range of incentives in the form of tax allowances, exemptions & concessions for companies, which include:

Buildings for Manufacturing, Mining and Hotels enjoy initial allowance of 10% and an annual 5% wear & tear Allowance of the cost.
Machinery for Farming, Tourism and Manufacturing qualify for wear & tear allowance of 50% per annum for the first two years.
Dividends from farming exempt from tax for first 5 years
Capital Expenditure on farm Improvements -20% per year write off for the first 5 years
Farm Works Allowance – 100% write off on stumping, clearing, prevention of soil erosion, boreholes, wells, water conservation and aerial or geographical surveys.
Customs Duty Exemption on machinery and equipment for mining and agriculture
Duty Free Imports of organic and inorganic chemicals, rubber, steel and plastics; most other inputs at 5%.
Customs Duty on Intermediate Goods 15% and on Finished Goods 25%.
Specific sector-related fiscal incentives and duty/tax concessions packaged for the Mining, Manufacturing, Agriculture, Tourism and Energy sectors.

Some incentives relating to investments on the Lusaka Stock Exchange (LuSE):